Has the Cloud Bubble Burst?
Smart Companies Rethinking Their Cloud Plans - Hybrid for Keeps or Coming Back On-Premise in '25?
SDLCPARTNERSHIPSCLOUDHYBRID CLOUD
Canzuki Admin
5/24/20254 min read


Has the Cloud Bubble Burst?
Smart Companies Rethinking Their Cloud Plans - Hybrid for Keeps or Coming Back On-Premise in '25?
So, remember how everyone was charging full steam ahead to the cloud, like it was the only way to go? For a lot of companies, the idea was to get there bit by bit, with a mix of cloud and their own gear as a temporary stop on the way to going fully cloud. But now, it looks like a lot of those smart cookies are hitting the pause button. They're really digging into whether the cloud is actually saving them money and giving them the benefits they were promised. And what's happening? Well, some are deciding that sticking with a mix–hybrid is the smart long-term play. Others are even saying, "You know what? For some stuff, it just makes more sense to bring it back in-house."
The Cloud Migration Ride: What We Thought Then
About ten years back, "cloud-first" was the big buzzword. If you weren't moving to the cloud, people thought you were missing out. The chats behind closed doors often went something like this:
The CISO worrying: "How do we keep our stuff safe if it's not even here? In our own data centre, at least we know where everything is."
The CFO crunching numbers: "These cloud subscriptions are a nightmare for planning! If we buy our own kit, it's ours, and we can write it off."
The IT manager feeling the pressure: "I need to cut costs, make things simpler, and not have so many people to manage."
The CEO pushing for new stuff: "We have to innovate to stay relevant, no question."
Then the pandemic hit in 2020, and suddenly everyone who was still on the fence just jumped straight into the cloud. Big players like AWS and Azure were really starting to reap the benefits of this massive shift. And for many, the plan was to eventually move everything there.
The Big Rethink in '25: Pausing the Cloud March
But now, in 2025, that straight march to the cloud is definitely being reconsidered. Smart companies are really taking a hard look at whether it's all panning out as expected. And it's leading to a couple of different paths:
Hybrid as the New Normal: A lot of businesses are realising that a mix of cloud and their own systems isn't just a temporary thing. It's actually the sweet spot, letting them use the cloud for some things and keeping other stuff on their own hardware for good reasons.
Actually Bringing Stuff Back: Then you've got companies that are saying, "Hold on a minute. For this particular workload, it's actually cheaper or more secure if we bring it back on-premise."
What's making them think this way? A few things:
Ownership and Transparency: Companies are asking the basic questions again. When your data and systems are in the cloud, how much control do you really have? This is making a long-term hybrid approach or keeping key things in-house look more appealing.
Financial Reality Check: Those big savings everyone talked about with the cloud? They haven't always happened. Cloud providers keep bumping up their prices, and suddenly owning your own gear doesn't look so bad, especially if you plan to stick around for a while. The CFOs are definitely taking notice of this.
The Power Bill Problem: All that AI stuff uses a crazy amount of electricity in data centres, and guess who ends up paying for it? That's right, the customers. This is making companies think twice about putting everything in the cloud.
Keeping AI Secure and Close: With all the talk about AI, a major concern for CISOs is keeping their AI systems secure and under their direct control. This is a significant driver for many to favour hybrid models or keeping AI infrastructure on-premise.
Security's a Whole Different Game Now: It's not just about keeping the bad guys out of one place anymore. With stuff in the cloud and all sorts of online services, security is way more complicated, and a hybrid approach lets companies manage the risks better.
Subscription Overload: All those monthly fees for cloud services and online software? They really add up. Companies are starting to think about what they can bring back in-house to cut those ongoing costs. In fact, FinOps has become a significant business function in itself, and if you're not actively managing these subscriptions, you're likely not doing your business justice.
What's Going on in the World: With all the global tensions, some companies are feeling a bit uneasy about having all their important stuff in public clouds. Having more control with a hybrid setup or keeping critical things on-premise feels safer.
The Backbone of the Cloud: A lot of the cloud runs on free, open-source software. But the people who keep that stuff going are getting older, and the young tech whizzes are all chasing the shiny new AI toys. This has some companies worried about whether that essential software will be well-maintained in the future, making a more diverse infrastructure look like a smarter bet.
What's Next? Smart Moves, Not Just Cloud Moves
So, it's clear that the headlong rush to the cloud is evolving into a much more considered approach. Companies are really digging deep into what makes the most sense for their specific needs, and for many, that's pointing towards a well-defined hybrid strategy for the long haul, or even strategically bringing certain workloads back on-premise. It's a sign of a maturing market, where smart, tailored decisions are taking precedence over a one-size-fits-all cloud mantra. You can bet the CISOs, CFOs, and increasingly FinOps teams are going to be central to these crucial conversations as businesses navigate the evolving landscape of infrastructure.
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